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Are there costs in addition to the purchase price?
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There are various costs involved in the transfer of property in South Africa. The following are costs borne by the purchaser:
A. Transfer Duty
Transfer duty is a tax levied by the government on transfer of ownership of fixed property. Where the purchaser is a natural person, the duty is calculated on the following scale:
No duty up to R190 000 of the purchase price
R190 001 - R330 000 5% above R190 000 R330 001 and above R7 000, plus 8% on the value above R330 000. Where the purchaser is a legal entity, transfer duty is levied at a flatrate of 10% of the purchase price.
B. Transfer Costs - Conveyancing and Attorney's Fees
These costs relate to the transferring attorney. They are calculated on a sliding scale regulated by a tariff and amount to between 1-2% of the purchase price.
C. Mortgage Costs
Mortgage costs are the costs incurred for raising mortgage finance. These fees include inspection fees of 0.2% of the bank valuation. Mortgage registration fees according to a prescribed tariff are payable to the registering attorney.
Therefore: a home costing R500 000 with a 50% mortgage bond registered in your ownm name would attract additional costs of R2 996.
These costs are subject to change from time to time and a complete and updated table of costs will be published here.
D. Estate Agents Commission
This fee, normally paid by the seller, is 7.5% plus VAT (VAT is currently 14%).
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FAQ 
ZAR 
USD 
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